\u3000\u3 Shengda Resources Co.Ltd(000603) 739 Qingdao Vland Biotech Inc(603739) )
Performance summary: in 2021, the company achieved an operating revenue of 1.15 billion yuan, a year-on-year increase of 19.9%, a net profit attributable to the parent company of 130 million yuan, a year-on-year increase of 21.7%, and a net profit attributable to the parent company of 90 million yuan after deduction, a year-on-year increase of 9.7%. In the first quarter of the year, the company achieved a revenue of 260 million yuan, a year-on-year decrease of 3.8%, and the net profit attributable to the parent company was 20 million yuan, a year-on-year decrease of 37.7%. The net profit attributable to the parent company after deduction was 9.609 million yuan, a year-on-year decrease of 57.5%.
Comments: the performance growth in the past 21 years was mainly due to the increase in sales of enzyme preparations and microecology. During the reporting period, enzyme preparation achieved a revenue of 430 million yuan, a year-on-year increase of 38.9%, sales volume of 16000 tons, a year-on-year increase of 35%, micro ecological business achieved a revenue of 250 million yuan, a year-on-year increase of 16.6%, and product sales volume of 27000 tons, a year-on-year increase of 19.1%. The company attaches importance to scientific research and innovation, and has invested 100 million yuan in R & D in 21 years, accounting for 8.8% of the operating revenue, which is at a high level. In the first quarter of the year, the company's revenue and profit fell year-on-year, mainly because the overall prosperity of the pig and white feather chicken breeding industry was low, the pig price was in a low consolidation state, the company as an upstream product supplier was affected, the revenue of livestock and poultry breeding related sectors fell, the cost of superimposed raw materials and energy consumption increased, and the gross profit margin was affected.
With the promotion of the anti drug policy and the continuous rise of feed prices, feed additives are expected to improve breeding efficiency and have broad prospects. In order to promote green breeding and ensure food safety, growth promoting antibiotics will be banned from the feed end in China from July 2020. The resistance of livestock and poultry needs to adapt to the process. The company's probiotics will adjust the balance of intestinal flora, biological antagonism, regulate immune function, resist pathogen infection and promote digestion and absorption. In addition, it can provide precisely customized enzymes, glucose oxidase, mycotoxin degrading enzymes A diversified enzyme scheme with lysozyme as the core. The company has formed a "iron substitution triangle" layout with enzyme preparations, probiotics and plant extracts. Now it has the ability to provide systematic solutions for anti prohibition. It has successively established strategic cooperation with core customers to form customized, differentiated and cross-border solutions, and established an animal micro ecological substitution application database to prepare for the iterative upgrading of products. As of April 2022, the spot price of corn is 2838 yuan / ton, the spot price of wheat is 3100 yuan / ton, and the price of soybean meal is 4535 yuan / ton. The feed enzyme preparation is the core business of the company's enzyme preparation sector. The main products are compound enzymes, including phytase, amylase, xylanase, etc. In November 2021, the Ministry of agriculture and rural areas formulated the guidelines for the identification and safety evaluation of strains for the production of directly fed microorganisms and fermented products. In the future, the industry will be more standardized. As the head enterprise of enzyme preparation, the company has high-quality products, high market recognition and good long-term development prospects.
In addition to the traditional enzyme preparation business, the company pays attention to R & D and innovation and distributes the large health sector. In 2020, the market scale of probiotics in China is close to 85 billion. Probiotics can help regulate human physiological functions and improve immunity. They belong to the industry encouraged by national industrial policies. In October 2021, it was announced that Weifang weizhilan, a wholly-owned subsidiary, introduced ADM as an international investor by means of capital increase. Both parties invested US $10 million respectively and held 50% of their shares respectively after the capital increase. Azure will mainly produce and sell probiotic products for human use in the future. It is expected to start production and operation in 2023. The company also explores the application of probiotics in the field of skin care and goes deep into the development of high-value products of highland barley. If the scientific research achievements are industrialized in the future, it will bring increment to the company's performance and have a good prospect.
Profit forecast and investment suggestions. It is estimated that the EPS from 2022 to 2024 will be 0.57 yuan, 0.70 yuan and 0.86 yuan respectively, and the corresponding dynamic PE will be 30 / 24 / 19 times respectively, maintaining the "hold" rating.
Risk warning: the R & D progress is less than expected; The product sales situation is less than expected; Downstream aquaculture outbreak, etc.
